Copper prices rise on soft China data

Copper prices edged higher in commodities trading today (November 13th), paring yesterday's losses on the back of increased expectations for fresh stimulus measures in China.

On the Comex division of the New York Mercantile Exchange, copper for December delivery added $0.07 to trade at $3.032 a pound as of 8:00 GMT, an increase of 0.22 per cent on Wednesday's close.

Prices had fallen $0.08 in the previous session, dropping 0.26 per cent to $3.025 a pound amid worries that today's Chinese factory output data would weaken demand for the metal in the world's second largest economy.

However, the report came in below expectations, showing that the Asian nation's industrial production grew 7.7 per cent year on year in October - below a consensus estimate for gains of eight per cent.

This represents China's second smallest increase in factory output since 2009, bringing the growth rate close to the lower threshold of Beijing's 7.5 per cent target - a level under which policymakers would be expected to introduce fresh economic stimulus.

The nation is the world's largest consumer of copper. In 2013, it accounted for almost two-fifths (40 per cent) of usage worldwide.

Elsewhere on the comex, gold prices continued to decline amid heightened expectations that the US Federal Reserve will raise interest rates in mid-2015, driving the dollar to multi-year highs in forex trading and weakening demand for safe-haven investments.

Gold futures for December delivery fell $1.80 to trade at $1,157.30 a troy ounce - a 0.16 per cent decline.

US interest rates have been kept close to zero for the last six years in a bid to promote borrowing through the recession, but the end of the third round of quantitative easing - announced in October - has laid the groundwork for a potential hike.

In the past, Fed policymakers have suggested that interest rates will be lifted approximately six months from the end of the monthly bond-buying programme.